Question

What sum of money will amount to rupees 9261 in 3 years at 5% per annum compound interest?

Answer 1

Using formula , A=P (1+R/100)^n

Given, A= Rs.9261

n= 3yrs

R = 5%

Now substituting the values,

Let sum of money be P

》9261=P(1+5/100)^3

Then simplifying,

》9261=P (1+1/20)^3

》9261=P (21/20)^3

》9261 × 20 × 20 × 20/ 21 × 21 × 21= P

》Simplifying the above line

》20 × 20 × 20 = P.

Therefore P = Rs.8000 ( Ans)